8-K
COLONY BANKCORP INC (CBAN)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 21, 2022
COLONY BANKCORP, INC.
(Exact name of registrant as specified in its charter)
| Georgia | 000-12436 | 58-1492391 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
115 South Grant Street, Fitzgerald, Georgia 31750
(Address of principal executive offices) (Zip Code)
(229) 426-6000
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each Class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common stock, par value $1.00 per share | CBAN | The NASDAQ Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operation and Financial Condition
On July 21, 2022, Colony Bankcorp, Inc. (the “Company”) issued a press release announcing its consolidated financial results for the second quarter ended June 30, 2022, as well as the announcement of a regular quarterly cash dividend. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 7.01. Regulation FD Disclosure
The Company is furnishing a copy of its most recent investor presentation, which it intends to use in connection with certain community group presentations. A copy of the presentation materials to be used by the Company is furnished as Exhibit 99.2 to this Current Report and is incorporated herein by reference. The Company will also host an investor earnings call at 5:00 p.m. EDT on Thursday, July 21, 2022.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits
(d)Exhibits.
| Exhibit Number | Description |
|---|---|
| 99.1 | Colony Bankcorp, Inc., press release dated July 21, 2022 |
| 99.2 | Investor Presentation dated July 21, 2022 |
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline<br>XBRL document. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| COLONY BANKCORP, INC. | ||
|---|---|---|
| Date: July 21, 2022 | By: | /s/ Andy Borrmann |
| Andy Borrmann | ||
| Executive Vice President and Chief Financial Officer |
Document
For additional information, contact:
Andy Borrmann
EVP & Chief Financial Officer
678.734.3505
COLONY BANKCORP REPORTS SECOND QUARTER 2022 RESULTS
DECLARES QUARTERLY CASH DIVIDEND OF $0.1075 PER SHARE
FITZGERALD, GA. (July 21, 2022) – Colony Bankcorp, Inc. (Nasdaq: CBAN) (“Colony” or the “Company”) today reported financial results for the second quarter of 2022. Financial highlights are shown below.
Financial Highlights:
•Net income decreased to $3.4 million, or $0.19 per diluted share, for the second quarter of 2022, compared to $5.3 million, or $0.34 per diluted share, for the first quarter of 2022, and $4.0 million, $0.42 per diluted share, for the second quarter of 2021.
•Operating net income of $5.2 million, or $0.30 per diluted share, for the second quarter of 2022 as compared to $5.4 million, or $0.37 per diluted share, for the the the first quarter of 2022, and $4.5 million, or $0.49 per diluted share, for the second quarter of 2021 (see Reconciliation of Non-GAAP Measures).
•The Company made significant progress in its hiring initiatives, including hiring several new commercial bankers and promoting a new Chief Financial Officer.
•$1.1 million in provision for loan losses was recorded in second quarter of 2022, compared to $50,000 recorded in first quarter of 2022, and no provision recorded in second quarter of 2021.
•Non-recurring charges of $1.35 million related to previously announced efficiency efforts were incurred during the second quarter of 2022.
•Due to the unusual interest rate environment, the company experienced accelerated amortization on purchased callable FHLB advances totaling $751,000 and a valuation decline of its SBSL servicing asset of $316,000.
•Total loans, excluding loans held for sale and loans that originated under the Paycheck Protection Program (the “PPP”), totaled $1.5 billion at June 30, 2022, an increase of $99.0 million, or 7.3% from the prior quarter.
•Mortgage production was $113.7 million, and mortgage sales totaled $82.3 million in the second quarter of 2022.
•Small Business Specialty Lending (“SBSL”) closed $21.0 million in Small Business Administration (“SBA”) loans and sold $18.4 million in SBA loans in the second quarter of 2022.
The Company also announced that on July 21, 2022, the Board of Directors declared a quarterly cash dividend of $0.1075 per share, to be paid on its common stock on August 20, 2022, to shareholders of record as of the close of business on August 6, 2022. The Company had 17,581,212 shares of its common stock outstanding as of July 20, 2022.
Commenting on the announcement, Heath Fountain, President and Chief Executive Officer, said, “While there were several moving parts during the quarter, we continue to position Colony for strong financial performance. In the quarter, we completed a $40 million subordinated debt offering, hired commercial bankers in the Atlanta, Birmingham and Huntsville markets, and grew loans, excluding loans held for sale, by almost $100 million, or nearly 30% annualized. Atypical expenses during the quarter totaled approximately $2.3 million, primarily for the previously announced charge for the efficiency project, and $751,000 of accelerated amortization of purchased FHLB borrowings called during the quarter. While asset quality metrics are strong and improving, we recorded higher provision expense than anticipated due to loan growth being meaningfully higher than projected.”
“Finally, we do expect to show continued strong asset generation for the next few quarters. The current loan pipelines remain very strong, and we continue to recruit seasoned banking professionals throughout our footprint”
Balance Sheet
•Total assets were $2.7 billion at June 30, 2022, a slight increase of $41.6 million from March 31, 2022.
•Total loans, including loans held for sale, were at $1.49 billion at June 30, 2022, an increase of $113.1 million from the quarter ended March 31, 2022.
•Total deposits were $2.3 billion and $2.4 billion at June 30, 2022 and March 31, 2022, respectively, with a slight decrease of $19.3 million.
•Total borrowings at June 30, 2022 totaled $152.1 million, an increase of $92.1 million or, 153.3%, compared to March 31, 2022 related to the subordinated debt issued in May 2022 and federal funds purchased outstanding at June 30, 2022.
Capital
•Colony continues to maintain a strong capital position, with ratios that exceed regulatory minimums required to be considered as “well-capitalized.”
•Preliminary tier one leverage ratio, tier one capital ratio, total risk-based capital ratio and common equity tier one capital ratio were 10.74%, 15.80%, 16.55%, and 12.39%, respectively, at June 30, 2022.
Second Quarter and June 30, 2022 Year to Date Results of Operations
•Net interest income, on a tax-equivalent basis, for the second quarter of 2022 totaled $19.3 million, compared to $15.2 million for the second quarter of 2021. Net interest income, on a tax-equivalent basis, for the six months ended June 30, 2022 totaled $38.6 million, compared to $29.6 million for the six months ended June 30, 2021. The increase during the quarter and six months ended June 30, 2022 compared to the same period in 2021 is primarily attributable to interest income related to loans acquired in the acquisition of SouthCrest Financial Group, Inc. (“SouthCrest”) in August of 2021.
•Net interest margin decreased 53 basis points from the second quarter of 2021, but increased two basis point from the first quarter of 2022. Net interest margin for the six months ended June 30, 2022 decreased 42 basis points from the six months ended June 30, 2021, but increased one point from the first quarter 2022. Two borrowings from the acquisition of SouthCrest were called and the remaining mark of approximately $750,000 was recognized in interest expense this quarter.
•Noninterest income totaled $10.1 million for the second quarter ended June 30, 2022, an increase of $2.3 million, or 29.8%, compared to the same period in 2021. The increase was primarily attributable to SBSL loan sales, SouthCrest and insurance company acquisitions, growth in interchange fee income and service charges on deposits offset by a decrease in mortgage fee income. Noninterest income totaled $19.2 million for the six months ended June 30, 2022, an increase of $2.9 million, or 17.45%, compared to the same period in 2021. The increase was primarily attributable to SBSL loan sales, SouthCrest and insurance company acquisitions, growth in interchange fee income and service charges on deposits offset by a decrease in mortgage fee income.
•Noninterest expense totaled $24.5 million for the second quarter ended June 30, 2022, compared to $17.5 million for the same period in 2021. Noninterest expense totaled $46.3 million for the six months ended June 30, 2022, compared to $33.2 million for the same period in 2021. The increases were primarily related to increase in salaries, information technology, and communications related to the acquisition of SouthCrest in August of 2021.
Asset Quality
•Nonperforming assets totaled $5.2 million and $6.5 million at June 30, 2022 and March 31, 2022, respectively, a decrease of $1.2 million.
•Other real estate owned and repossessed assets totaled approximately $293,000 at June 30, 2022, and March 31, 2022.
•Net loans charged-off were $58,000, or 0.02% of average loans for the second quarter of 2022, compared to net charge-offs of $41,000 or 0.01% for the first quarter of 2022.
•The loan loss reserve was $14.0 million, or 0.96% of total loans, at June 30, 2022, compared to $12.9 million, or 0.95% of total loans, at March 31, 2022.
As noted above and in the table on page 7, overall asset quality remains strong.
Earnings call information
The Company will host an earnings conference call at 5:00 p.m. EDT on Thursday, July 21, 2022, to discuss the recent results and answer appropriate questions. The conference call can be accessed by dialing 1-844-200-6205 (or 1-929-526-1599 for international participants). The conference call access code is 981866. A replay of the call will be available until Friday, July 29, 2022. To listen to the replay, dial 1-866-813-9403 and enter the access code 213634.
About Colony Bankcorp
Colony Bankcorp, Inc. is the bank holding company for Colony Bank. Founded in 1975 and headquartered in Fitzgerald, Georgia, Colony operates 41 locations throughout Georgia. At Colony Bank, we offer a wide range of banking services including personal banking, business banking, mortgage solutions, government guaranteed lending solutions, and more. We have expanded our services to also include consumer insurance products, such as automotive, homeowners, and other insurance needs for our community. Colony’s common stock is traded on the NASDAQ Global Market under the symbol “CBAN.” For more information, please visit www.colony.bank. You can also follow the Company on social media.
Forward-Looking Statements
Certain statements contained in this press release that are not statements of historical fact constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, certain statements may be contained in the Company’s future filings with the SEC, in press releases, and in oral and written statements made by or with the approval of the Company that are not statements of historical fact and constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Examples of forward-looking statements include, but are not limited to: (i) projections and/or expectations of revenues, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statement of plans and objectives of Colony Bankcorp, Inc. or its management or Board of Directors, including those relating to products or services; (iii) statements of future economic performance; (iv) statements regarding growth strategy, capital management, liquidity and funding, and future profitability; (v) statements regarding the effects of the COVID-19 pandemic and related variants on the Company’s business and financial results and conditions; and (vi) statements of assumptions underlying such statements. Words such as “believes,” “anticipates,” “expects,” “intends,” “targeted” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.
Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: the continued impact of the COVID-19 pandemic and related variants on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations; the Company’s ability to implement its various strategic and growth initiatives; competitive pressures among financial institutions increasing significantly; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; changes in the prices, values and sales volumes of residential and commercial real estate; interest rate risk; legislation or regulatory changes which adversely affect the ability of the consolidated Company to conduct business combinations or new operations; adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs related to the COVID-19 pandemic and related variants; higher inflation and its impacts; the effects of war or other conflicts including the impacts related to or resulting from Russia’s military action in Ukraine; risks related to the Company’s recently completed acquisitions, including that the anticipated benefits from the recently completed acquisitions are not realized in the time frame anticipated or at all as a result of changes in general economic and market conditions or other unexpected factors or events; the risks associated with the Company’s pursuit of future acquisitions; and general competitive, economic, political and market conditions or other unexpected factors or events. These and other factors, risks and uncertainties could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Many of these factors are beyond the Company’s ability to control or predict.
Forward-looking statements speak only as of the date on which such statements are made. These forward-looking statements are based upon information presently known to the Company’s management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without
limitation, the risks and other factors set forth in the Company’s filings with the Securities and Exchange Commission, the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors,” and in the Company’s quarterly reports on Form 10-Q and current reports on Form 8-K. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events. Readers are cautioned not to place undue reliance on these forward-looking statements.
Explanation of Certain Unaudited Non-GAAP Financial Measures
The measures entitled operating net income, adjusted earnings per diluted share, tangible book value per common share, tangible equity to tangible assets, operating efficiency ratio and pre-provision net revenue are not measures recognized under U.S. generally accepted accounting principles (GAAP) and therefore are considered non-GAAP financial measures. The most comparable GAAP measures are net income, diluted earnings per share, book value per common share, total equity to total assets, and efficiency ratio, respectively. Operating net income and operating efficiency ratio both exclude acquisition-related expenses. Acquisition-related expenses include fees associated with current period acquisitions and ongoing amortization of intangibles related to prior acquisitions. Adjusted earnings per diluted share includes the adjustments to operating net income. Tangible book value per common share and tangible equity to tangible assets exclude goodwill and other intangibles.
Management uses these non-GAAP financial measures in its analysis of the Company's performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company's performance, and if not provided would be requested by the investor community. The Company believes the non-GAAP measures enhance investors' understanding of the Company's business and performance. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently.
These disclosures should not be considered an alternative to GAAP. The computations of operating net income, adjusted earnings per diluted share, tangible book value per common share, tangible equity to tangible assets, and operating efficiency ratio and the reconciliation of these measures to net income, diluted earnings per share, book value per common share, total equity to total assets, and efficiency ratio, are set forth in the table below.
| Colony Bankcorp, Inc. | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Reconciliation of Non-GAAP Measures | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| (dollars in thousands, except per share data) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | ||||||||||
| Operating net income reconciliation | |||||||||||||||
| Net income (GAAP) | $ | 3,416 | $ | 5,324 | $ | 4,160 | $ | 5,583 | $ | 3,997 | |||||
| FHLB mark from called borrowings | 751 | — | — | — | — | ||||||||||
| Severance costs | 1,346 | — | — | — | — | ||||||||||
| Acquisition-related expenses | 1 | 139 | 1,261 | 1,794 | 698 | ||||||||||
| Writedown of bank premises | — | — | 90 | — | — | ||||||||||
| Income tax benefit | (272) | (26) | (284) | (466) | (181) | ||||||||||
| Operating net income | $ | 5,242 | $ | 5,437 | $ | 5,227 | $ | 6,911 | $ | 4,514 | |||||
| Weighted average diluted shares | 17,586,298 | 15,877,695 | 13,673,998 | 12,344,926 | 9,498,783 | ||||||||||
| Adjusted earnings per diluted share | $ | 0.30 | $ | 0.37 | $ | 0.40 | $ | 0.57 | $ | 0.49 | |||||
| Tangible book value per common share reconciliation | |||||||||||||||
| Book value per common share (GAAP) | $ | 13.34 | $ | 14.23 | $ | 15.92 | $ | 15.88 | $ | 15.46 | |||||
| Effect of goodwill and other intangibles | (3.44) | (3.40) | (4.51) | (4.46) | (1.89) | ||||||||||
| Tangible book value per common share | $ | 9.90 | $ | 10.83 | $ | 11.41 | $ | 11.42 | $ | 13.57 | |||||
| Tangible equity to tangible assets reconciliation | |||||||||||||||
| Equity to assets (GAAP) | 9.32 | % | 9.32 | % | 8.09 | % | 8.64 | % | 8.37 | % | |||||
| Effect of goodwill and other intangibles | (2.79) | % | (2.07) | % | (2.15) | % | (2.27) | % | (0.99) | % | |||||
| Tangible equity to tangible assets | 6.52 | % | 7.25 | % | 5.93 | % | 6.37 | % | 7.38 | % | |||||
| Operating efficiency ratio calculation | |||||||||||||||
| Efficiency ratio (GAAP) | 83.75 | % | 76.94 | % | 82.15 | % | 77.68 | % | 76.53 | % | |||||
| Severance costs | (4.61) | — | — | — | — | ||||||||||
| Acquisition-related expenses | — | (2.20) | (5.33) | (7.30) | (3.79) | ||||||||||
| Writedown of bank premises | — | — | (0.30) | — | — | ||||||||||
| Operating efficiency ratio | 79.14 | % | 74.74 | % | 76.52 | % | 70.38 | % | 72.74 | % | |||||
| Pre-provision net revenue | |||||||||||||||
| Net interest income before provision (credit) for credit losses | $ | 19,167 | $ | 19,188 | $ | 19,022 | $ | 17,868 | $ | 15,069 | |||||
| Noninterest income | 10,057 | 9,152 | 10,815 | 9,438 | 7,751 | ||||||||||
| $ | 29,224 | $ | 28,340 | $ | 29,837 | $ | 27,306 | $ | 22,820 | ||||||
| Noninterest expense | 24,475 | 21,805 | 24,512 | 21,211 | 17,465 | ||||||||||
| Pre-provision net revenue | $ | 4,749 | $ | 6,535 | $ | 5,325 | $ | 6,095 | $ | 5,355 | |||||
| Colony Bankcorp, Inc. | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Selected Financial Information | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| (dollars in thousands, except per share data) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | ||||||||||
| EARNINGS SUMMARY | |||||||||||||||
| Net interest income | $ | 19,167 | $ | 19,188 | $ | 19,022 | $ | 17,868 | $ | 15,069 | |||||
| Provision for loan losses | 1,100 | 50 | 50 | 150 | — | ||||||||||
| Non-interest income | 10,057 | 9,152 | 10,815 | 9,438 | 7,751 | ||||||||||
| Non-interest expense | 24,475 | 21,805 | 24,512 | 21,211 | 17,465 | ||||||||||
| Income taxes | 233 | 1,161 | 1,116 | 362 | 1,358 | ||||||||||
| Net income | 3,416 | 5,324 | 4,159 | 5,583 | 3,997 | ||||||||||
| PERFORMANCE MEASURES | |||||||||||||||
| Per common share: | |||||||||||||||
| Common shares outstanding | 17,581,212 | 17,586,333 | 13,673,898 | 13,674,198 | 9,498,783 | ||||||||||
| Weighted average basic shares | 17,586,298 | 15,877,695 | 13,673,998 | 12,344,926 | 9,498,783 | ||||||||||
| Weighted average diluted shares | 17,586,298 | 15,877,695 | 13,673,998 | 12,344,926 | 9,498,783 | ||||||||||
| Earnings per basic share | $ | 0.19 | $ | 0.34 | $ | 0.30 | $ | 0.45 | $ | 0.42 | |||||
| Earnings per diluted share | 0.19 | 0.34 | 0.30 | 0.45 | 0.42 | ||||||||||
| Adjusted earnings per diluted share(b) | 0.30 | 0.37 | 0.40 | 0.57 | 0.49 | ||||||||||
| Cash dividends declared per share | 0.1075 | 0.1075 | 0.1025 | 0.1025 | 0.1025 | ||||||||||
| Common book value per share | 13.34 | 14.23 | 15.92 | 15.88 | 15.46 | ||||||||||
| Tangible book value per common share(b) | 9.90 | 10.83 | 11.41 | 11.42 | 13.50 | ||||||||||
| Pre-provision net revenue | $ | 4,749 | $ | 6,535 | $ | 5,325 | $ | 6,095 | $ | 5,355 | |||||
| Performance ratios: | |||||||||||||||
| Net interest margin (a) | 3.15 | % | 3.13 | % | 3.16 | % | 3.48 | % | 3.68 | % | |||||
| Return on average assets | 0.51 | 0.81 | 0.64 | 1.00 | 0.91 | ||||||||||
| Return on average total equity | 5.68 | 8.88 | 7.65 | 11.49 | 11.14 | ||||||||||
| Efficiency ratio | 83.75 | 76.94 | 82.15 | 77.68 | 76.53 | ||||||||||
| Operating efficiency ratio (b) | 79.14 | 74.74 | 76.52 | 70.38 | 72.74 | ||||||||||
| Colony Bankcorp, Inc. | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Selected Financial Information | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| (dollars in thousands, except per share data) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | ||||||||||
| ASSET QUALITY | |||||||||||||||
| Nonperforming loans (NPLs) | $ | 4,948 | $ | 6,171 | $ | 5,449 | $ | 12,246 | $ | 9,205 | |||||
| Other real estate owned | 246 | 246 | 281 | 807 | 270 | ||||||||||
| Repossessed assets | 47 | 48 | 49 | 3 | 29 | ||||||||||
| Total nonperforming assets (NPAs) | 5,241 | 6,465 | 5,779 | 13,056 | 9,504 | ||||||||||
| Classified loans | 19,247 | 18,306 | 19,016 | 30,300 | 30,852 | ||||||||||
| Criticized loans | 49,204 | 52,859 | 58,938 | 61,857 | 64,818 | ||||||||||
| Net loan (recoveries)/charge-offs | 58 | 41 | (17) | 144 | (178) | ||||||||||
| Allowance for loan losses to total loans | 0.96 | % | 0.95 | % | 0.96 | % | 0.98 | % | 1.26 | % | |||||
| Allowance for loan losses to total NPLs | 282.19 | 209.35 | 236.92 | 105.15 | 140.15 | ||||||||||
| Allowance for loan losses to total NPAs | 266.42 | 199.83 | 223.40 | 98.63 | 135.73 | ||||||||||
| Net (recoveries)/charge-offs to average loans | 0.02 | 0.01 | (0.01) | 0.05 | (0.09) | ||||||||||
| NPLs to total loans | 0.34 | 0.46 | 0.41 | 0.93 | 0.90 | ||||||||||
| NPAs to total assets | 0.19 | 0.24 | 0.21 | 0.52 | 0.54 | ||||||||||
| NPAs to total loans and foreclosed assets | 0.36 | 0.48 | 0.43 | 1.00 | 0.93 | ||||||||||
| AVERAGE BALANCES | |||||||||||||||
| Total assets | 2,676,612 | 2,679,242 | 2,589,908 | 2,272,904 | 1,777,559 | ||||||||||
| Loans, net | 1,384,795 | 1,333,784 | 1,306,796 | 1,218,102 | 1,052,645 | ||||||||||
| Loans, held for sale | 29,843 | 28,650 | 38,543 | 24,964 | 24,139 | ||||||||||
| Deposits | 2,325,756 | 2,341,357 | 2,274,910 | 1,975,418 | 1,547,139 | ||||||||||
| Total stockholders’ equity | 241,281 | 243,120 | 215,783 | 197,109 | 144,761 | ||||||||||
| (a) Computed using fully taxable-equivalent net income. | |||||||||||||||
| (b) Non-GAAP measure - see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and reconciliation to GAAP. | |||||||||||||||
| Colony Bankcorp, Inc. | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Average Balance Sheet and Net Interest Analysis | |||||||||||||||
| Six Months Ended June 30, | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| (dollars in thousands) | Average<br>Balances | Income/<br>Expense | Yields/<br>Rates | Average<br>Balances | Income/<br>Expense | Yields/<br>Rates | |||||||||
| Assets | |||||||||||||||
| Interest-earning assets: | |||||||||||||||
| Loans, net of unearned income 1 | $ | 1,395,179 | $ | 32,339 | 4.68 | % | $ | 1,077,859 | $ | 27,805 | 5.20 | % | |||
| Investment securities, taxable | 842,491 | 8,084 | 1.94 | % | 394,431 | 3,401 | 1.74 | % | |||||||
| Investment securities, tax-exempt 2 | 112,843 | 1,022 | 1.83 | % | 32,887 | 314 | 1.93 | % | |||||||
| Deposits in banks and short term investments | 117,177 | 159 | 1.84 | % | 164,882 | 97 | 0.12 | % | |||||||
| Total interest-earning assets | 2,467,689 | 41,605 | 3.40 | % | 1,670,059 | 31,617 | 3.82 | % | |||||||
| Noninterest-earning assets | 210,625 | 105,746 | |||||||||||||
| Total assets | $ | 2,678,314 | $ | 1,775,805 | |||||||||||
| Liabilities and stockholders' equity | |||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||
| Interest-earning demand and savings | $ | 1,437,325 | $ | 568 | 0.08 | % | $ | 880,838 | $ | 311 | 0.07 | % | |||
| Other time | 335,744 | 657 | 0.39 | % | 257,173 | 912 | 0.72 | % | |||||||
| Total interest-bearing deposits | 1,773,069 | 1,225 | 0.14 | % | 1,138,011 | 1,223 | 0.22 | % | |||||||
| Federal funds purchased | 3,978 | 27 | 1.35 | % | — | — | — | % | |||||||
| Federal Home Loan Bank advances3 | 49,100 | 1,195 | 4.91 | % | 22,500 | 230 | 2.06 | % | |||||||
| Paycheck Protection Program Liquidity Facility | — | — | — | % | 51,516 | 93 | 0.36 | % | |||||||
| Other borrowings | 38,492 | 608 | 3.18 | % | 37,715 | 514 | 2.75 | % | |||||||
| Total other interest-bearing liabilities | 91,570 | 1,830 | 4.03 | % | 111,731 | 837 | 1.51 | % | |||||||
| Total interest-bearing liabilities | 1,864,639 | 3,055 | 0.33 | % | 1,249,742 | 2,060 | 0.33 | % | |||||||
| Noninterest-bearing liabilities: | |||||||||||||||
| Demand deposits | $ | 560,444 | $ | 373,728 | |||||||||||
| Other liabilities | 15,013 | 6,791 | |||||||||||||
| Stockholders' equity | 242,196 | 145,544 | |||||||||||||
| Total noninterest-bearing liabilities and stockholders' equity | 817,653 | 526,063 | |||||||||||||
| Total liabilities and stockholders' equity | $ | 2,682,292 | $ | 1,775,805 | |||||||||||
| Interest rate spread | 3.07 | % | 3.49 | % | |||||||||||
| Net interest income | $ | 38,550 | $ | 29,557 | |||||||||||
| Net interest margin | 3.15 | % | 3.57 | % |
1 The average balance of loans includes the average balance of nonaccrual loans. Income on such loans is recognized and recorded on the cash basis. Taxable-equivalent adjustments totaling $62,000 and $124,000 for the six months ended June 30, 2022 and 2021, respectively, are included in income and fees on loans. Accretion income of $429,000 and $313,000 for the six months ended June 30, 2022 and 2021 are also included in income and fees on loans.
2 Taxable-equivalent adjustments totaling $133,000 and $84,000 for the six months ended June 30, 2022 and 2021, respectively, are included in tax-exempt interest on investment securities.
3Federal Home Loan Bank advances interest expense includes $751,000 for the six months ended June 30, 2022 and is the recognized mark on two advances that were acquired in the SouthCrest acquisition that were called early.
| Colony Bankcorp, Inc. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Average Balance Sheet and Net Interest Analysis | ||||||||||||
| Three Months Ended June 30, | ||||||||||||
| 2022 | 2021 | |||||||||||
| (dollars in thousands) | Average<br>Balances | Income/<br>Expense | Yields/<br>Rates | Average<br>Balances | Income/<br>Expense | Yields/<br>Rates | ||||||
| Assets | ||||||||||||
| Interest-earning assets: | ||||||||||||
| Loans, net of unearned income 4 | $ | 1,427,563 | $ | 16,317 | 4.58 | % | $ | 1,076,784 | $ | 14,165 | 5.34 | % |
| Investment securities, taxable | 842,481 | 4,332 | 2.06 | % | 417,343 | 1,794 | 1.74 | % | ||||
| Investment securities, tax-exempt 5 | 114,658 | 542 | 1.89 | % | 33,156 | 160 | 1.96 | % | ||||
| Deposits in banks and short term investments | 73,190 | 103 | 0.68 | % | 146,591 | 45 | 0.12 | % | ||||
| Total interest-earning assets | 2,457,891 | 21,294 | 3.47 | % | 1,673,874 | 16,164 | 3.92 | % | ||||
| Noninterest-earning assets | 218,721 | 103,685 | ||||||||||
| Total assets | $ | 2,676,612 | $ | 1,777,559 | ||||||||
| Liabilities and stockholders' equity | ||||||||||||
| Interest-bearing liabilities: | ||||||||||||
| Interest-earning demand and savings | $ | 1,429,331 | $ | 307 | 0.09 | % | $ | 901,978 | $ | 146 | 0.07 | % |
| Other time | 328,355 | 319 | 0.39 | % | 253,944 | 423 | 0.68 | % | ||||
| Total interest-bearing deposits | 1,757,686 | 626 | 0.14 | % | 1,155,922 | 569 | 0.20 | % | ||||
| Federal funds purchased | 7,916 | 27 | 1.35 | % | — | — | — | % | ||||
| Federal Home Loan Bank advances6 | 46,550 | 943 | 8.12 | % | 22,500 | 115 | 2.09 | % | ||||
| Paycheck Protection Program Liquidity Facility | — | — | — | % | 19,031 | 25 | 0.53 | % | ||||
| Other borrowings | 44,729 | 409 | 2.28 | % | 37,536 | 258 | 2.78 | % | ||||
| Total other interest-bearing liabilities | 99,195 | 1,379 | 5.58 | % | 79,067 | 398 | 2.04 | % | ||||
| Total interest-bearing liabilities | 1,856,881 | 2,005 | 0.43 | % | 1,234,989 | 967 | 0.32 | % | ||||
| Noninterest-bearing liabilities: | ||||||||||||
| Demand deposits | 568,070 | $ | 391,217 | |||||||||
| Other liabilities | 10,380 | 6,592 | ||||||||||
| Stockholders' equity | 241,281 | 144,761 | ||||||||||
| Total noninterest-bearing liabilities and stockholders' equity | 819,731 | 542,570 | ||||||||||
| Total liabilities and stockholders' equity | $ | 2,676,612 | $ | 1,777,559 | ||||||||
| Interest rate spread | 3.04 | % | 3.60 | % | ||||||||
| Net interest income | $ | 19,289 | $ | 15,197 | ||||||||
| Net interest margin | 3.15 | % | 3.68 | % |
4The average balance of loans includes the average balance of nonaccrual loans. Income on such loans is recognized and recorded on the cash basis. Taxable-equivalent adjustments totaling $31,000 and $67,000 for the quarters ended June 30, 2022 and 2021, respectively, are included in income and fees on loans. Accretion income of $269,000 and $104,000 for the quarter ended June 30, 2022 and 2021 are also included in income and fees on loans.
5Taxable-equivalent adjustments totaling $70,000 and $43,000 for the quarters ended June 30, 2022 and 2021, respectively, are included in tax-exempt interest on investment securities.
6 Federal Home Loan Bank advances interest expense includes $751,000 for the quarters ended June 30, 2022 is the recognized mark on two advances that were acquired in the SouthCrest acquisition that were called early.
| Colony Bankcorp, Inc. | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Segment Reporting | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| (dollars in thousands) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | ||||||||||
| Banking Division | |||||||||||||||
| Net interest income | $ | 18,819 | $ | 18,824 | $ | 18,316 | $ | 17,181 | $ | 14,864 | |||||
| Provision for loan losses | 1,100 | 50 | 50 | 150 | — | ||||||||||
| Noninterest income | 5,186 | 4,300 | 4,480 | 4,340 | 3,354 | ||||||||||
| Noninterest expenses | 19,503 | 17,701 | 19,280 | 16,941 | 13,366 | ||||||||||
| Income taxes | 226 | 900 | 475 | 434 | 1,241 | ||||||||||
| Segment income | $ | 3,176 | $ | 4,473 | $ | 2,991 | $ | 3,996 | $ | 3,611 | |||||
| Total segment assets | $ | 2,664,657 | $ | 2,627,450 | $ | 2,620,501 | $ | 2,499,223 | $ | 1,710,345 | |||||
| Full time employees | 396 | 404 | 400 | 417 | 294 | ||||||||||
| Mortgage Banking Division | |||||||||||||||
| Net interest income | $ | 57 | $ | 71 | $ | 114 | $ | 138 | $ | 123 | |||||
| Provision for loan losses | — | — | — | — | — | ||||||||||
| Noninterest income | 2,736 | 2,912 | 3,102 | 3,104 | 2,997 | ||||||||||
| Noninterest expenses | 2,799 | 2,711 | 2,869 | 2,765 | 2,887 | ||||||||||
| Income taxes | (7) | 101 | 334 | (290) | 60 | ||||||||||
| Segment income | $ | 1 | $ | 171 | $ | 13 | $ | 767 | $ | 173 | |||||
| Total segment assets | $ | 20,183 | $ | 19,417 | $ | 25,149 | $ | 21,184 | $ | 25,149 | |||||
| Full time employees | 59 | 62 | 55 | 53 | 53 | ||||||||||
| Small Business Specialty Lending Division | |||||||||||||||
| Net interest income | $ | 291 | $ | 293 | $ | 592 | $ | 549 | $ | 82 | |||||
| Provision for loan losses | — | — | — | — | — | ||||||||||
| Noninterest income | 2,135 | 1,940 | 3,233 | 1,994 | 1,400 | ||||||||||
| Noninterest expenses | 2,173 | 1,393 | 2,363 | 1,505 | 1,212 | ||||||||||
| Income taxes | 14 | 160 | 307 | 218 | 57 | ||||||||||
| Segment income | $ | 239 | $ | 680 | $ | 1,155 | $ | 820 | $ | 213 | |||||
| Total segment assets | $ | 43,553 | $ | 39,921 | $ | 46,065 | $ | 23,291 | $ | 20,024 | |||||
| Full time employees | 28 | 28 | 26 | 24 | 24 | ||||||||||
| Total Consolidated | |||||||||||||||
| Net interest income | $ | 19,167 | $ | 19,188 | $ | 19,022 | $ | 17,868 | $ | 15,069 | |||||
| Provision for loan losses | 1,100 | 50 | 50 | 150 | — | ||||||||||
| Noninterest income | 10,057 | 9,152 | 10,815 | 9,438 | 7,751 | ||||||||||
| Noninterest expenses | 24,475 | 21,805 | 24,512 | 21,211 | 17,465 | ||||||||||
| Income taxes | 233 | 1,161 | 1,116 | 362 | 1,358 | ||||||||||
| Segment income | $ | 3,416 | $ | 5,324 | $ | 4,159 | $ | 5,583 | $ | 3,997 | |||||
| Total segment assets | $ | 2,728,393 | $ | 2,686,788 | $ | 2,691,715 | $ | 2,543,698 | $ | 1,755,518 | |||||
| Full time employees | 483 | 494 | 481 | 494 | 371 | ||||||||||
| Colony Bankcorp, Inc. | |||||||||||||||
| --- | --- | --- | --- | --- | |||||||||||
| Consolidated Balance Sheets | |||||||||||||||
| June 30, 2022 | December 31, 2021 | ||||||||||||||
| (dollars in thousands) | (unaudited) | (audited) | |||||||||||||
| ASSETS | |||||||||||||||
| Cash and due from banks | $ | 23,133 | $ | 18,975 | |||||||||||
| Interest-bearing deposits in banks and federal funds sold | 53,349 | 178,257 | |||||||||||||
| Cash and cash equivalents | 76,482 | 197,232 | |||||||||||||
| Investment securities available for sale, at fair value | 657,546 | 938,164 | |||||||||||||
| Investment securities held to maturity, at amortized cost | 304,014 | — | |||||||||||||
| Other investments, at cost | 12,968 | 14,012 | |||||||||||||
| Loans held for sale | 38,526 | 38,150 | |||||||||||||
| Loans, net of unearned income | 1,452,805 | 1,337,977 | |||||||||||||
| Allowance for loan losses | (13,963) | (12,910) | |||||||||||||
| Loans, net | 1,438,842 | 1,325,067 | |||||||||||||
| Premises and equipment | 41,322 | 43,033 | |||||||||||||
| Other real estate | 246 | 281 | |||||||||||||
| Goodwill | 54,078 | 52,906 | |||||||||||||
| Other intangible assets | 6,478 | 7,389 | |||||||||||||
| Bank owned life insurance | 54,845 | 55,159 | |||||||||||||
| Deferred income taxes, net | 21,178 | 3,644 | |||||||||||||
| Other assets | 21,868 | 16,678 | |||||||||||||
| Total assets | $ | 2,728,393 | $ | 2,691,715 | |||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||
| Liabilities: | |||||||||||||||
| Deposits: | |||||||||||||||
| Noninterest-bearing | $ | 572,978 | $ | 552,576 | |||||||||||
| Interest-bearing | 1,758,533 | 1,822,032 | |||||||||||||
| Total deposits | 2,331,511 | 2,374,608 | |||||||||||||
| Federal funds purchased | 23,766 | — | |||||||||||||
| Federal Home Loan Bank advances | 65,000 | 51,656 | |||||||||||||
| Other borrowed money | 63,342 | 36,792 | |||||||||||||
| Accrued expenses and other liabilities | 10,179 | 10,952 | |||||||||||||
| Total liabilities | $ | 2,493,798 | $ | 2,474,008 | |||||||||||
| Stockholders’ equity | |||||||||||||||
| Common stock, $1 par value; 20,000,000 shares authorized, 17,581,212 and 13,673,898 issued and outstanding, respectively | $ | 17,581 | $ | 13,674 | |||||||||||
| Paid in capital | 167,376 | 111,021 | |||||||||||||
| Retained earnings | 104,561 | 99,189 | |||||||||||||
| Accumulated other comprehensive loss, net of tax | (54,923) | (6,177) | |||||||||||||
| Total stockholders’ equity | 234,595 | 217,707 | |||||||||||||
| Total liabilities and stockholders’ equity | $ | 2,728,393 | $ | 2,691,715 | |||||||||||
| Colony Bankcorp, Inc. | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| Consolidated Statements of Income (unaudited) | |||||||||||||||
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||
| Interest income: | |||||||||||||||
| Loans, including fees | $ | 16,266 | 14,099 | $ | 32,281 | 27,672 | |||||||||
| Investment securities | 4,803 | 1,893 | 8,974 | 3,591 | |||||||||||
| Deposits in banks and short term investments | 103 | 44 | 159 | 98 | |||||||||||
| Total interest income | 21,172 | 16,036 | 41,414 | 31,361 | |||||||||||
| Interest expense: | |||||||||||||||
| Deposits | 626 | 569 | 1,225 | 1,223 | |||||||||||
| Federal funds purchased | 27 | — | 27 | — | |||||||||||
| Federal Home Loan Bank advances | 1,098 | 115 | 1,464 | 230 | |||||||||||
| Paycheck Protection Program Liquidity Facility | — | 25 | — | 93 | |||||||||||
| Other borrowings | 254 | 258 | 339 | 515 | |||||||||||
| Total interest expense | 2,005 | 967 | 3,055 | 2,061 | |||||||||||
| Net interest income | 19,167 | 15,069 | 38,359 | 29,300 | |||||||||||
| Provision for loan losses | 1,100 | — | 1,150 | 500 | |||||||||||
| Net interest income after provision for loan losses | 18,067 | 15,069 | 37,209 | 28,800 | |||||||||||
| Noninterest income: | |||||||||||||||
| Service charges on deposits | 1,895 | 1,264 | 3,720 | 2,486 | |||||||||||
| Mortgage fee income | 2,736 | 3,005 | 5,648 | 7,000 | |||||||||||
| Gain on sale of SBA loans | 1,863 | 1,263 | 3,589 | 2,735 | |||||||||||
| (Loss)/Gain on sale of securities | — | 141 | 24 | 137 | |||||||||||
| Interchange fees | 2,159 | 1,667 | 4,159 | 3,197 | |||||||||||
| BOLI income | 353 | 222 | 665 | 430 | |||||||||||
| Other | 1,052 | 189 | 1,400 | 367 | |||||||||||
| Total noninterest income | 10,057 | 7,751 | 19,205 | 16,352 | |||||||||||
| Noninterest expense: | |||||||||||||||
| Salaries and employee benefits | 15,072 | 10,126 | 28,344 | 20,081 | |||||||||||
| Occupancy and equipment | 1,608 | 1,245 | 3,227 | 2,571 | |||||||||||
| Acquisition related | 1 | 699 | 125 | 698 | |||||||||||
| Information technology expenses | 2,549 | 1,856 | 4,904 | 3,448 | |||||||||||
| Professional fees | 695 | 690 | 1,517 | 1,177 | |||||||||||
| Advertising and public relations | 417 | 566 | 854 | 1,146 | |||||||||||
| Communications | 1,073 | 308 | 1,892 | 527 | |||||||||||
| Other | 3,061 | 1,975 | 5,419 | 3,571 | |||||||||||
| Total noninterest expense | 24,475 | 17,465 | 46,282 | 33,219 | |||||||||||
| Income before income taxes | 3,649 | 5,355 | 10,132 | 11,933 | |||||||||||
| Income taxes | 233 | 1,358 | 1,395 | 3,016 | |||||||||||
| Net income | $ | 3,416 | $ | 3,997 | $ | 8,737 | $ | 8,917 | |||||||
| Earnings per common share: | |||||||||||||||
| Basic | $ | 0.19 | $ | 0.42 | $ | 0.52 | $ | 0.94 | |||||||
| Diluted | 0.19 | 0.42 | 0.52 | 0.94 | |||||||||||
| Dividends declared per share | 0.1075 | 0.1025 | 0.2150 | 0.2050 | |||||||||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 17,586,298 | 9,498,783 | 16,731,997 | 9,498,783 | |||||||||||
| Diluted | 17,586,298 | 9,498,783 | 16,731,997 | 9,498,783 | |||||||||||
| Colony Bankcorp, Inc. | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Quarterly Comparison | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| (dollars in thousands, except per share data) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | ||||||||||
| Assets | $ | 2,728,393 | $ | 2,686,788 | $ | 2,691,715 | $ | 2,512,581 | $ | 1,755,518 | |||||
| Loans, net | 1,438,842 | 1,341,113 | 1,325,067 | 1,296,983 | 1,009,747 | ||||||||||
| Deposits | 2,331,511 | 2,350,786 | 2,374,608 | 2,195,122 | 1,542,214 | ||||||||||
| Total equity | 234,595 | 250,277 | 217,707 | 217,130 | 146,894 | ||||||||||
| Net income | 3,416 | 5,324 | 4,160 | 5,583 | 3,997 | ||||||||||
| Earnings per basic share | $ | 0.19 | $ | 0.34 | $ | 0.30 | $ | 0.45 | $ | 0.42 | |||||
| Key Performance Ratios: | |||||||||||||||
| Return on average assets | 0.51 | % | 0.81 | % | 0.64 | % | 1.00 | % | 0.91 | % | |||||
| Return on average total equity | 5.68 | % | 8.88 | % | 7.65 | % | 11.49 | % | 11.14 | % | |||||
| Total equity to total assets | 9.32 | % | 9.32 | % | 8.09 | % | 8.64 | % | 8.37 | % | |||||
| Tangible equity to tangible assets (a) | 6.52 | % | 7.25 | % | 5.93 | % | 6.37 | % | 7.38 | % | |||||
| Net interest margin | 3.15 | % | 3.13 | % | 3.16 | % | 3.48 | % | 3.68 | % | |||||
| (a) Non-GAAP measure - see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and reconciliation to GAAP. | |||||||||||||||
| Colony Bankcorp, Inc. | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||
| Quarterly Loan Comparison | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| (dollars in thousands) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | ||||||||||
| Core | $ | 1,217,498 | $ | 1,093,126 | $ | 990,063 | $ | 931,793 | $ | 905,850 | |||||
| PPP | 128 | 387 | 8,486 | 16,999 | 58,769 | ||||||||||
| Purchased | 235,179 | 260,519 | 339,428 | 361,068 | 57,999 | ||||||||||
| Total | $ | 1,452,805 | $ | 1,354,032 | $ | 1,337,977 | $ | 1,309,860 | $ | 1,022,618 | |||||
| Colony Bankcorp, Inc. | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||
| Quarterly Loans by Location Comparison | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| (dollars in thousands) | Second Quarter | First Quarter | First Quarter | Fourth Quarter | Third Quarter | ||||||||||
| Atlanta | $ | 287,460 | $ | 246,629 | $ | 281,040 | $ | 278,473 | $ | 436 | |||||
| Augusta | 36,545 | 38,462 | 36,268 | 28,064 | 30,521 | ||||||||||
| Birmingham | 2,255 | — | — | — | — | ||||||||||
| Middle Georgia | 146,159 | 117,336 | 117,788 | 100,804 | 73,458 | ||||||||||
| Northwest Georgia | 38,520 | 38,430 | 27,167 | 24,334 | 2,703 | ||||||||||
| Coastal Georgia | 259,248 | 237,621 | 235,799 | 233,648 | 236,985 | ||||||||||
| South Central Georgia | 348,273 | 345,421 | 336,849 | 352,057 | 361,821 | ||||||||||
| Southwest Georgia | 127,783 | 118,263 | 105,937 | 99,385 | 95,870 | ||||||||||
| West Georgia | 181,791 | 168,071 | 161,678 | 160,663 | 148,271 | ||||||||||
| Small Business Specialty Lending | 23,411 | 39,934 | 23,101 | 8,850 | 14,923 | ||||||||||
| Paycheck Protection Program | 128 | 387 | 8,486 | 16,999 | 55,425 | ||||||||||
| Purchase Accounting | (614) | (697) | (948) | (1,025) | (565) | ||||||||||
| Other | 1,846 | 4,175 | 4,812 | 7,608 | 2,770 | ||||||||||
| Total | $ | 1,452,805 | $ | 1,354,032 | $ | 1,337,977 | $ | 1,309,860 | $ | 1,022,618 | |||||
| Colony Bankcorp, Inc. | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||
| Quarterly PPP Fees Comparison | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| (dollars in thousands) | Second Quarter | First Quarter | Fourth Quarter | Third Quarter | Second Quarter | ||||||||||
| PPP loan fee income | $ | 6 | $ | 505 | $ | 502 | $ | 1,556 | $ | 1,581 | |||||
| Unearned income on PPP loans | 6 | 12 | 517 | 1,019 | 2,573 |
14
cban2q2022presentation-2
1 INVESTOR PRESENTATION SECOND QUARTER - 2022
2 This presentation contains "forward-looking statements“ within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, certain statements may be contained in Colony Bankcorp, Inc's (the "Company") future filings with the Securities and Exchange Commission (the "SEC"), in press releases, and in oral and written statements made by or with the approval of the Company that are not statements of historical fact and constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Examples of forward- looking statements include, but are not limited to: (i) projections and/or expectations of revenues, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statement of plans and objectives of Colony Bankcorp, Inc. or its management or Board of Directors, including those relating to products or services; (iii) statements of future economic performance; (iv) statements regarding growth strategy, capital management, liquidity and funding and future profitability; (v) statements regarding the effects of the COVID-19 pandemic and related variants on the Company’s business and financial results and conditions; and (vi) statements of assumptions underlying such statements. Words such as “believes,” “anticipates,” “expects,” “intends,” “targeted” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: the impact of the continued COVID-19 pandemic and related variants on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations; the Company’s ability to implement its various strategic and growth initiatives; competitive pressures among financial institutions increasing significantly; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; changes in the prices, values and sales volumes of residential and commercial real estate; interest rate risk; legislation or regulatory changes which adversely affect the ability of the consolidated Company to conduct business combinations or new operations; adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company's participation in and execution of government programs related to the COVID-19 pandemic and related variants; higher inflation and its impacts; the effects of war or other conflicts including the impacts related to or resulting from Russia’s military action in Ukraine; risks related to the Company’s recently completed acquisitions, including that the anticipated benefits from the recently completed acquisitions are not realized in the time frame anticipated or at all as a result of changes in general economic and market conditions or other unexpected factors or events; the risks associated with the Company’s pursuit of future acquisitions; and general competitive, economic, political and market conditions or other unexpected factors or events. These and other factors, risks and uncertainties could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Many of these factors are beyond the Company’s ability to control or predict. Forward-looking statements speak only as of the date on which such statements are made. These forward-looking statements are based upon information presently known to the Company’s management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in the Company’s filings with the Securities and Exchange Commission, the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors,” and in the Company’s quarterly reports on Form 10-Q and current reports on Form 8-K. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events. Readers are cautioned not to place undue reliance on these forward-looking statements. CAUTIONARY STATEMENTS
3 Statements included in this presentation include non-GAAP financial measures and should be read along with the accompanying tables, which provide a reconciliation of non-GAAP financial measure to GAAP financial measures. The non-GAAP financial measures used in this presentation include the following: operating net income, adjusted earnings per diluted share, tangible book value per common share, tangible equity to tangible assets, operating efficiency ratio and pre-provision net revenue. The most comparable GAAP measures are net income, earnings per diluted share, book value per common share, total equity to total assets, efficiency ratio and income before income taxes, respectively. Operating net income and operating efficiency ratio both exclude acquisition-related expenses. Acquisition-related expenses include fees associated with current period acquisitions and ongoing amortization of intangibles related to prior acquisitions. Adjusted earnings per diluted share includes the adjustments to operating net income. Tangible book value and tangible equity to tangible assets excludes goodwill and other intangibles. Pre-provision net revenue excludes provision for credit losses. Management uses these non-GAAP financial measures in its analysis of the Company's performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance, and if not provided would be requested by the investor community. The Company believes the non-GAAP measures enhance investors' understanding of the Company's business and performance. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently. Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider Colony Bankcorp, Inc. performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of Colony Bankcorp, Inc. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP. NON-GAAP FINANCIAL MEASURES
4 Colony Banking Branches Colony LPOs Acquired with SouthCrest Financial Group, Inc. merger closed 8/1/2021 Franchise Footprint COMPANY PROFILE Statesboro Savannah Conyers Augusta Fayetteville Soperton Rochelle Chickamauga DouglasSylvester Rockmart Athens Moultrie Valdosta Quitman Atlanta Cedartown Canton Cumming Luthersville MaconLaGrange CentervilleThomaston Columbus WarnerRobins Manchester ◦ Founded in 1975 ◦ Headquartered in Fitzgerald, Georgia ◦ Completed acquisition of SouthCrest Financial Group, Inc. on August 1, 2021, creating Georgia’s largest community bank, headquartered outside of Atlanta. ◦ Completed the Barnes Agency acquisition on August 2021; created Colony Insurance subsidiary ◦ $2.7 billion in assets as of June 30, 2022 ◦ 39 locations in Georgia and 2 LPOs in Alabama ◦ Strategic plan for profitable growth ◦ Track record of solid organic growth ◦ Successful execution of acquisitions Eastman Cordele Leesburg Ashburn Albany Tifton Fitzgerald Broxton
5 Name Position Years In Banking Years With Colony T. Heath Fountain President and Chief Executive Officer 21 3 Brian D. Schmitt Executive Vice Chairman 39 1 Edward "Lee" Bagwell EVP, Chief Risk Officer and General Counsel 18 18 Leonard H. “Lenny” Bateman EVP, Chief Credit Officer 25 2 Andy Borrmann EVP, Chief Financial Officer 18 1 Kimberly Dockery EVP, Chief Administrative Officer 15 3 Max "Eddie" Hoyle EVP, Chief Banking Officer 42 10 LEADERSHIP TEAM
6 DRIVING HIGH PERFORMANCE •Achieve strong organic growth each year • Proactive business development system • Increased accountability for loan and deposit production • Created incentive plans to motivate bankers • Retail marketing plan to grow deposits • Streamlined our consumer and commercial deposits products • Larger national and regional banks with large market share in our footprint are more focused on large MSAs • Organic and acquisition-related growth of demand deposits and savings and money market accounts of 71% in 2021 • Organic loan growth of 29.2% annualized for the second quarter of 2022
7 DRIVING HIGH PERFORMANCE •Achieve strong organic growth each year • Seize on expansion opportunities • Completed the acquisition of SouthCrest Financial Group, Inc. ("SouthCrest) in August 2021; 98 days from announcement to close ▪ Acquisition provides entry into attractive Northern Georgia markets and increased access to highly populous suburban Atlanta markets ▪ Establishes Colony as acquirer of choice for community banks in the Southeast ◦ Completed the acquisition of The Barnes Agency in August 2021; created Colony Insurance subsidiary, an Allstate agency ◦ Technology and regulatory headwinds are causing industry consolidation ◦ Industry consolidation creates an opportunity to acquire customers and talent
8 2020 2021 August 2021 Acquired SouthCrest Financial Group, Inc. ($729.71M in assets) February 2020 Acquired East Georgia Homebuilder loan portfolio ($47M in loans) May 2019 Acquired LBC Bancshares ($207M in assets) Acquired PFB Mortgage (>$100M in loan production in 2019) October 2018 Acquired 1 Branch from Planters First ($20M in loans, $10M in deposits) 2017 – 2021 Total Assets (Dollars in thousands) 201920182017 PROVEN TRACK RECORD OF FRANCHISE ENHANCEMENT $1,232,755 $1,251,878 $1,515,313 $1,763,974 2,691,715 5-Year CAGR : 16.1%
9 SOUTHCREST ACQUISITION ◦ Creates Georgia’s largest community bank headquartered outside of Atlanta and fourth largest bank in the State1 ◦ Establishes a metro Atlanta corporate banking footprint with 6 lenders ◦ Enhanced scale, growth, profitability and performance ◦ Significant revenue growth opportunities identified in the areas of mortgage, SBA and consumer lending ◦ Positions Colony as the acquirer of choice for community banks in Georgia and contiguous states ◦ Expected to be meaningfully accretive to Colony's fully diluted earnings per share in year one, excluding transaction costs ◦ Solidifies management team with key executives from SouthCrest (1) Community bank defined as having less than $10.0 billion in total assets and providing a full suite of consumer and commercial products, as of March 31, 2022 Source: S&P Global Market Intelligence
10 Note: Dollar values in thousands unless otherwise noted; Financial data as of December 31, 2020 a. Community bank defined as having less than $10.0 billion in total assets as of December 31, 2020 b. Nonperforming Assets defined as the sum of nonaccrual loans, restructured loans, and other real estate owned Source: S&P Global Market Intelligence; SCSG documents Colony Banking Branches Colony LPOs SouthCrest Financial Group, Inc. Pro Forma Franchise Footprint Overview ◦ Natural expansion into logical, contiguous markets in western Georgia and entry into adjacent markets in northern Georgia • Solidifies state-wide footprint • Provides entry into the attractive Atlanta and northern Georgia markets • Creates a balanced footprint of rural and urban markets • Diversifies CBAN’s deposit base and credit portfolio SOUTHCREST FINANCIAL OPPORTUNITY Statesboro Savannah Conyers Augusta Fayetteville Albany Tifton Soperton Eastman Rochelle Chickamauga Douglas Fitzgerald Broxton Cordele AshburnLeesburg Sylvester Rockmart Athens Moultrie Valdosta Quitman Atlanta Cedartown Canton Cumming Luthersville MaconLaGrange Centerville Thomaston Columbus WarnerRobins
11 DRIVING HIGH PERFORMANCE •Achieve strong organic growth each year • Seize on expansion opportunities • Increase operating efficiency • Cost efficiency initiative with anticipated savings of $3.0 million per year starting in late third quarter 2022 • Closing two branches (Soperton and Luthersville), subject to customary regulatory approvals • Reduce our banking division workforce by 25 team members, or 6% • Optimize our balance sheet through organic loan growth • Utilize technology to lower operating costs • Target a bank level efficiency ratio of 60% over the next three years
12 DRIVING HIGH PERFORMANCE • Increase non-interest income • Acquisition of The Barnes Agency completed on August 1, 2021 - forming Colony Insurance to offer consumer insurance solutions • Growing our deposit account customer base increases service charge and interchange revenue • Started a Small Business Specialty Lending division to offer SBA, USDA and other government guaranteed loan products • Look to add wealth management and other lines of business •Achieve strong organic growth each year • Seize on expansion opportunities • Increase operating efficiency
13 COLONY INSURANCE ◦ Acquired The Barnes Agency, an Allstate appointed consumer property and casualty insurance agency in Macon, GA on August 1, 2021 ▪ Formed a new subsidiary, Colony Insurance, which will offer a suite of consumer insurance solutions ▪ Named Jason Barnes President of Colony Insurance ▪ Acquired three additional middle Georgia Allstate agencies on September 1, 2021 ▪ Acquired three additional west Georgia Allstate agencies on October 1, 2021 ◦ Logical extension to existing range of financial products and services ◦ Diversifies revenue stream and increases non-interest income ◦ Opportunities to grow insurance offerings and enhance profitability of the branch network through cross-selling of products and services
14 • Increased volume capacity in Mortgage division production: • $405.0 million in production in 2021 • $97.2 million production in first quarter 2022 • $113.7 million production in second quarter 2022 • Added purchase focused, experienced origination teams in Athens, Augusta, LaGrange, and Savannah • Focused on continued expansion of the mortgage line of business • Recruiting efforts implemented are offsetting rate increases • Housing market remains strong in the Company's footprint MORTGAGE DIVISION
15 SMALL BUSINESS SPECIALTY LENDING GROUP • Originated loans under SBA Paycheck Protection Program (PPP) related to the Economic Aid Act, resulting in 950 loans totaling over $52.4 million in 2021 ◦ Originated 1,672 totaling over $137.8 million in 2020 ◦ $128,000 remaining at the end of 2Q2022 • Closed $100.0 million in loans in 2021 • Closed $21.0 million in loans in quarter ended June 30, 2022 • Sold $18.4 million in loans in quarter ended June 30, 2022 • Closed $26.7 million in loans in six months ended June 30, 2022 • Sold $31.9 million in loans in six months ended June 30, 2022 • Recruiting and marketing efforts increased to offset production headwinds
16 DRIVING HIGH PERFORMANCE • Increase non-interest income •Create a culture of high performance • Instill behaviors and habits that lead to great results • Coaching team members to improve performance • Increase incentive and performance based compensation • Pursue open communication and honest feedback •Achieve strong organic growth each year • Seize on expansion opportunities • Improve operating efficiency
17 • Since our founding in 1975, our mission is to provide an alternative to traditional banking that our customers deserve • Focus on relationships that are beneficial to the customer and the Bank – one-sided relationships and transactions do not create value • Strive to be trusted advisors and give consultative advice • Nimble and responsive to customer needs • Team members are passionate about delivering solutions VALUE PROPOSITION TO OUR CUSTOMERS
18 2017 2018 2019 2020 2021 Diluted earnings per share $ 0.87 $ 1.40 $ 1.12 $ 1.24 $ 1.66 Dividends per share $ 0.10 $ 0.20 $ 0.30 $ 0.40 $ 0.41 Return on average assets 0.63 % 0.99 % 0.72 % 0.7 % 0.89 % Return on average total equity 8.28 % 13.32 % 8.72 % 8.56 % 10.6 % Net interest margin 3.46 % 3.56 % 3.61 % 3.5 % 3.39 % Efficiency ratio 69.19 % 70.05 % 77.93 % 73.34 % 72.21 % ANNUAL FINANCIAL HIGHLIGHTS
19 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 Diluted earnings per share $ 0.42 $ 0.45 $ 0.30 $ 0.34 $ 0.19 Adjusted earnings per diluted share (1) 0.49 0.57 0.40 0.37 0.30 Dividends per share 0.1025 0.1025 0.1025 0.1075 0.1075 Return on average assets 0.91% 1.00% 0.64% 0.81 % 0.51 % Return on average total equity 11.14 % 11.49 % 7.65 % 8.88 % 5.68 % Net interest margin 3.68 % 3.48 % 3.16 % 3.13 % 3.15 % Efficiency ratio 76.53 % 77.68 % 82.15 % 76.94 % 83.75 % Pre-provision net revenue (1) $ 5,355 $ 6,095 $ 5,325 $ 6,535 $ 4,749 FINANCIAL HIGHLIGHTS (1) See non-GAAP reconciliation table on slide 27; dollars in millions.
20 2017 2018 2019 2020 2021 Total assets $1,232.8 $1,251.9 $1,515.3 $1,763.9 $2,691.7 Loans 765.3 782.4 971.2 1,062.8 1,339.4 Unearned income (0.5) (0.5) (0.6) (2.4) (0.4) Unamortized discount on acquired loans — (0.3) (1.7) (0.9) (1.0) Allowance for loan losses (7.5) (7.3) (6.9) (12.1) (12.9) Total loans, net 757.3 774.3 962.0 1,047.4 1,325.1 Total deposits 1,068.0 1,085.1 1,294.2 1,445.1 2,374.6 NPA/Total assets 0.95% 0.90% 0.73% 0.58% 0.21% ANNUAL BALANCE SHEET FINANCIAL HIGHLIGHTS (Dollars in millions)
21 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 Total assets $1,755.5 $2,512.6 $2,691.7 $2,686.8 $2,728.4 Loans 1,025.7 1,311.9 1,339.4 1,354.2 1,452.8 (Unearned income)/ Deferred Costs (2.5) (0.9) (0.4) 0.6 0.6 Unamortized discount on acquired loans (0.6) (1.1) (1.0) (0.8) (0.6) Allowance for loan losses (12.9) (12.9) (12.9) (12.9) (14.0) Total loans, net 1,009.7 1,297.0 1,325.1 1,341.1 1,438.8 Total deposits 1,542.2 2,195.1 2,374.6 2,350.8 2,331.5 NPA/Total assets 0.54% 0.52% 0.21 % 0.24% 0.19% BALANCE SHEET FINANCIAL HIGHLIGHTS (Dollars in millions) Trailing 5 quarters
22 The current indicated annual rate is $0.43 per share, equating to a yield of 2.9%.(2) SHAREHOLDER FOCUSED DIVIDEND POLICY (1) The Board of Directors declared a dividend to be paid on its common stock on August 20, 2022, to shareholders of record as of the close of business on August 6, 2022. (2) Yield is based on closing stock price on July 19, 2022 of $15.01 Quarterly Dividend Payment $0.05 $0.075 $0.10 $0.1025 $0.1075 Quarterly Dividend 2018 2019 2020 2021 2022 (1) $— $0.03 $0.05 $0.08 $0.10 $0.13
23 CAPITAL RATIOS 9.0% 9.6% 7.5% 8.5% 10.7% 12.5% 14.3% 11.9% 13.9% 15.8% 13.2% 15.4% 12.7% 14.6% 16.6% 10.3% 10.3% 10.5% 13.9% 12.4% Tier One Leverage Ratio Tier One Ratio Total Risk-based Capital Ratio Common Equity Tier One Capital Ratio 2019 2020 2021 06/30/21 6/30/2022
24 SOLID CORE DEPOSIT FRANCHISE As of June 30, 2022 Total Deposits: $2.3 billion MRQ Cost of Deposits: 0.14% Interest Bearing Demand, 25% Noninterest bearing demand, 37% Time deposits, 14% Savings and Money- markets, 24%
25 LOAN PORTFOLIO BREAKDOWN As of June 30, 2022 $1,453.0 million Real Estate 86% Consumer and Other 1.3% Commercial 11% Agriculture 1.8% $1,249.4 million Multifamily real estate 5% Residential real estate 17% Construction 15% Farmland 6% Nonowner occupied real estate 37% Owner occupied real estate 20%
26 LOAN PORTFOLIO (Dollars in millions) Organic Loan Growth $1,023 $1,310 $1,338 $1,354 $1,453 Organic PPP Loans Purchased Loans 06/30/21 9/30/2021 12/31/2021 03/31/2022 06/30/2022 $— $500 $1,000 $1,500 $2,000
27 • Premier Georgia community bank franchise •Well positioned for organic growth • Improving earnings outlook • Significant M&A opportunities and market dislocation • Seasoned leadership with a proven track record INVESTMENT CONSIDERATIONS
28 RECONCILIATION OF NON-GAAP MEASURES (Dollars in thousands, except per share data) 2022 2021 Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter Operating net income reconciliation Net income (GAAP) 3,416 5,324 4,160 5,583 3,997 FHLB mark from called borrowings 751 — — — — Severance Costs 1,346 — — — — Acquisition-related expenses 1 139 1,261 1,794 698 Writedown on bank premises — — 90 — — Tax effect of adjustment items (272) (26) (284) (466) (181) Operating net income 5,242 5,437 5,227 6,911 4,514 Weighted average diluted shares 17,586,298 15,877,695 13,673,998 12,344,926 9,498,783 Adjusted earnings per diluted share 0.30 0.37 0.40 0.57 0.49 Tangible book value per common share reconciliation Book value per common share (GAAP) 13.34 14.23 15.92 15.88 15.46 Effect of goodwill and other intangibles (3.44) (3.40) (4.51) (4.46) (1.89) Tangible book value per common share 9.90 10.83 11.41 11.42 13.57 Tangible equity to tangible assets reconciliation Equity to assets (GAAP) 9.32 % 9.32 % 8.09 % 8.64 % 8.37 % Effect of goodwill and other intangibles (2.79) (2.07) (2.15) (2.27) (0.99) Tangible equity to tangible assets 6.52 % 7.25 % 5.93 % 6.37 % 7.38 % Operating efficiency ratio calculation Efficiency ratio (GAAP) 83.75 % 76.94 % 82.15 % 77.68 % 76.53 % Severance costs (4.61) — — — — Acquisition-related expenses — (2.20) (5.33) (7.30) (3.79) Writedown of bank premises — — (0.30) — — Operating efficiency ratio 79.14 % 74.74 % 76.52 % 70.38 % 72.74 % Pre-provision net revenue Net interest income before provision (credit) for credit $ 19,167 $ 19,188 $ 19,022 $ 17,868 $ 15,069 Noninterest income 10,057 9,152 10,815 9,438 7,751 $ 29,224 $ 28,340 $ 29,837 $ 27,306 $ 22,820 Noninterest expense 24,475 21,805 24,512 21,211 17,465 Pre-provision net revenue $ 4,749 $ 6,535 $ 5,325 $ 6,095 $ 5,355
29 NASDAQ: CBAN